Betterware de MéxicoP.I. de's (NYSE:BWMX) Earnings Offer More Than Meets The Eye

Simply Wall St.11-01

Betterware de México, S.A.P.I. de C.V.'s (NYSE:BWMX) solid earnings announcement recently didn't do much to the stock price. Our analysis suggests that shareholders might be missing some positive ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2480883684?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/D5RQ4IawidDVtnEYQELG0g--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/bba80cef4667ee8433810d7fbee032a7","is_english":true,"pubTime":"2024-11-01 20:41","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2480883684","market":"us","top_or_hot":-1,"title":"Betterware de MéxicoP.I. de's (NYSE:BWMX) Earnings Offer More Than Meets The Eye","media":"Simply Wall St.","content":"<div>\n<p>Betterware de México, S.A.P.I. de C.V.'s (NYSE:BWMX) solid earnings announcement recently didn't do much to the stock price. Our analysis suggests that shareholders might be missing some positive ...</p>\n\n<a href=\"https://finance.yahoo.com/news/betterware-m-xicop-des-nyse-124110222.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Betterware de MéxicoP.I. de's (NYSE:BWMX) Earnings Offer More Than Meets The Eye</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBetterware de MéxicoP.I. de's (NYSE:BWMX) Earnings Offer More Than Meets The Eye\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-01 20:41 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/betterware-m-xicop-des-nyse-124110222.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Betterware de México, S.A.P.I. de C.V.'s (NYSE:BWMX) solid earnings announcement recently didn't do much to the stock price. Our analysis suggests that shareholders might be missing some positive ...</p>\n\n<a href=\"https://finance.yahoo.com/news/betterware-m-xicop-des-nyse-124110222.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NYSE","symbol_name":"纽交所","start_time":0,"source_url":"https://finance.yahoo.com/news/betterware-m-xicop-des-nyse-124110222.html","article_id":"2480883684","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/D5RQ4IawidDVtnEYQELG0g--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/bba80cef4667ee8433810d7fbee032a7"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2480883684","pubTimestamp":1730464870,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Betterware de México, S.A.P.I. de C.V.'s  solid earnings announcement recently didn't do much to the stock price. Our analysis suggests that shareholders might be missing some positive underlying factors in the earnings report.See our latest analysis for Betterware de MéxicoP.I. de. NYSE:BWMX Earnings and Revenue History November 1st 2024. Zooming In On Betterware de MéxicoP.I. de's Earnings. One key financial ratio used to measure how well a company converts its profit to free cash flow  is the accrual ratio. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. This ratio tells us how much of a company's profit is not backed by free cashflow.Our Take On Betterware de MéxicoP.I. de's Profit Performance","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"NYSE":"纽交所","BWMX":"Betterware"},"translate_title":"Betterware de MexicoP.I.de(NYSE：BWMX)的盈利报价超出了人们的预期","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BWMX":1,"NYSE":1},"content_text":"Betterware de México, S.A.P.I. de C.V.'s (NYSE:BWMX) solid earnings announcement recently didn't do much to the stock price. Our analysis suggests that shareholders might be missing some positive underlying factors in the earnings report. \n See our latest analysis for Betterware de MéxicoP.I. de \n\n\n\n  NYSE:BWMX Earnings and Revenue History November 1st 2024\n \n\n Zooming In On Betterware de MéxicoP.I. de's Earnings \n One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. This ratio tells us how much of a company's profit is not backed by free cashflow. \n As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. \n For the year to September 2024, Betterware de MéxicoP.I. de had an accrual ratio of -0.15. Therefore, its statutory earnings were very significantly less than its free cashflow. In fact, it had free cash flow of Mex$1.8b in the last year, which was a lot more than its statutory profit of Mex$885.4m. Betterware de MéxicoP.I. de's free cash flow actually declined over the last year, which is disappointing, like non-biodegradable balloons. Having said that, there is more to the story. The accrual ratio is reflecting the impact of unusual items on statutory profit, at least in part. \n That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. \n The Impact Of Unusual Items On Profit \n Betterware de MéxicoP.I. de's profit was reduced by unusual items worth Mex$435m in the last twelve months, and this helped it produce high cash conversion, as reflected by its unusual items. In a scenario where those unusual items included non-cash charges, we'd expect to see a strong accrual ratio, which is exactly what has happened in this case. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. If Betterware de MéxicoP.I. de doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year. \nOur Take On Betterware de MéxicoP.I. de's Profit Performance\n In conclusion, both Betterware de MéxicoP.I. de's accrual ratio and its unusual items suggest that its statutory earnings are probably reasonably conservative. Looking at all these factors, we'd say that Betterware de MéxicoP.I. de's underlying earnings power is at least as good as the statutory numbers would make it seem. If you want to do dive deeper into Betterware de MéxicoP.I. de, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 3 warning signs for Betterware de MéxicoP.I. de and you'll want to know about these bad boys. \n Our examination of Betterware de MéxicoP.I. de has focussed on certain factors that can make its earnings look better than they are. And it has passed with flying colours. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free  collection of companies boasting high return on equity, or  this list of stocks with significant insider holdings to be useful. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2480883684"}